Source: AutoGuide Source: AutoGuide It's no secret that cars cost more than ever. With massive inflation showing no signs of abating, JD Power reports that people are paying more for their cars, and that shoppers are extending their financing terms to longer lengths. Source: AutoGuide Source: AutoGuide 2027 Subaru Getaway: All The Details With the average selling price of a new vehicle in 2026 coming in around $50k, it was inevitable that buyers would be extending their loans longer than they otherwise would have. With the cost of living (and subsequently the cost of cars) rapidly increasing and the average wages not keeping pace, this wasn't a matter of "if" but rather a matter of "when" people would have to finance their purchases for longer terms. The math is, unfortunately, fairly simple: If the cost of something increases while disposable income stays flat, it requires longer financing terms to justify -- and afford -- a purchase. Such is the reality so many people are living in, and JD Power has a report that corroborates this. Source: AutoGuide Source: AutoGuide JD Power tells us that buyers are re-entering the marketplace after three or four years, yet they are also needing to lengthen their buying terms as a result of inflation and a rapidly increasing CoL. The report says that last year, 26% of people trading in their cars carried in negative equity, an increase from the 24 percent in 2024. Translation: People have less money to spend, and are in the red when they have to do so. Lease and finance terms are really taking a hit as a consequence of money rates. Loan terms of 84 months are no longer abnormal, with JD Power reporting that 12.8 percent of sales in March of 2026 are opting for-- or being financially forced into-- a full 7 year term. One in five buyers are also spending over $1,000 per month on their car payment, and 20 percent of buyers are back in the market three to four years after their latest purchase. Meanwhile, 26 percent of people trading in cars have negative equity in said trade-ins; this, too, represents an increase from the prior year. Long story short, people are both being forced into buying new vehicles, and simultaneously being financially raked over the coals for doing so. Long story short, money is more expensive than ever, and consumers are paying the price. This is no more evident than in the space of vehicular purchases, and automotive purchases are being financed for longer durations than ever before. Hopefully things change for the better, and soon. These 10 Car Brands Might Let You Down